The landscape of plaintiff funding has fundamentally changed as of January 1, 2026. For years, critics called the industry the "Wild West," but new legislation in major hubs like Georgia and New York has introduced a "Transparency Era."
The Georgia Update (SB 69): As of this year, all litigation financiers in Georgia must be registered with the state. More importantly, the law now mandates that funders provide indemnification for any adverse costs if a case is lost, adding a massive layer of protection for the plaintiff.
The New York Standard (Effective June 17, 2026): Governor Hochul’s Consumer Litigation Funding Act introduces a mandatory 10-day right to cancel. If you take an advance and change your mind, you can return the funds within 10 days with zero interest or fees.
Capped Repayments: Both states are moving away from open-ended compounding interest. New regulations now favor structures where total repayment is capped at a set percentage of the settlement, ensuring the plaintiff—not the funder—takes home the lion’s share.
The Takeaway: These laws don't just regulate companies; they protect you. If a funder isn't compliant with these new transparency rules, they may forfeit their right to be repaid entirely.